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Korea Investment Corporation

Republic of Korea

Introduction

The Korea Investment Corporation (KIC) was established in 2005 to manage public funds entrusted by the government and Bank of Korea through investing in a variety of international financial assets. Our net asset value was $91.8 billion as of the end of 2015.

Mission

Our mission is to preserve and enhance the international purchasing power of sovereign assets by consistently generating returns that exceed inflation levels, and to contribute to the development of the domestic finance industry.

Governance

KIC’s Steering Committee, as its highest governing body, ensures autonomy and independent operation. It has nine members, including the chairman, six professionals from the private sector, the CEO of KIC, and representatives of institutions that have entrusted KIC with assets exceeding one trillion won, namely the Minister of Strategy and Finance and Governor of the Bank of Korea.

KIC reports its business activities to the National Assembly, in accordance with the National Assembly Act and the Act on the Inspection and Investigation of State Administration. We are subject to annual inspections conducted by the National Assembly.

Investment Policy & Objectives

KIC’s investment objective is to generate consistent and sustainable returns in line with and in excess of relevant benchmarks, within appropriate levels of risk. We aim to increase returns while (1) minimizing the risks from individual markets and assets through portfolio diversification; and (2) exercising flexibility to seize investment opportunities.

According to the KIC Act, under which we were founded, KIC can invest in asset classes including public equities, bonds, commodities, private equity, real estate, and hedge funds. Decisions related to strategic asset allocation are subject to deliberation by the Steering Committee. Investment management agreements signed by KIC and its sponsors specify eligible asset classes and benchmark targets, serving as the basis for our risk management and performance evaluation.

Contact Details

Become a Member

We welcome applications for membership from SWFs willing to endorse the Santiago Principles on a voluntary basis. Please contact us at secretariat@ifswf.org for more details and/or see presentation below.